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• Indian toy market is expected to double in 6 years: Estimated at US$ 1.5 Billion, the Indian toy market is projected to grow at a CAGR of 12.2% between 2023 and 2028, to reach US$ 3 billion.

Factors driving growth:

• • Increased wages
  • Growing middle-class
  • A better understanding of play’s role in child development.

Toy Exports 3x in last 7 years: Several government initiatives have led to steady growth and there has been a 240% increase in India’s toy exports (HSN Codes 9503, 9504, 9505) from US$ 96.17 million in 2014–15 to US$ 326.63 million in 2021–22.

Imports down by 67%: The value of toys imported into India (HSN Codes 9503, 9504, 9505) decreased 67% between 2014–15 and 2021–22, from US$ 332.55 million to US$ 109.72 million.

Regulations affecting Manufacturing, Export & Import: 

Manufacturing & Exports growing:

• BIS certification, which Increased the quality and safety of Indian toys, the competitiveness of Indian toy manufacturers, and the demand for Indian toys in foreign markets
• Government initiatives like the PLI scheme, and the Toy Cluster Development Scheme

Imports declining:

• Government programs including the mandatory BIS licence have decreased imports and increased domestic manufacturing 
• In 2020, Basic customs duty on toys was increased from 20% to 60%

Toy cluster and Developments:

• • 28 BIS licences to foreign manufacturers
  • 1097 BIS licences to domestic toy manufacturers
  • 96.7%(1,061) of these licences given to MSMEs
  • Toy Park in Greater Noida, Uttar Pradesh: The Toy Park, a 100-acre SEZ, is set to attract over Rs. 1,000 crore in investment and create over 10,000 jobs by 2024
  • Koppal Toy Cluster, Karnataka: The Koppal Toy Cluster, a 40-acre toy industry hub, is set to attract Rs. 500 crore in investment and create over 5,000 jobs by 2024
  • New toy clusters in Madhya Pradesh, Rajasthan, and Tamil Nadu: The Indian government has approved the establishment of 8 new toy clusters across the country, totaling Rs. 2300 crore, in MP, Rajasthan, Karnataka, UP, and TN
  • Production-linked incentive (PLI) scheme for toy manufacturing: The Indian government is considering a PLI scheme worth Rs. 35 billion to enhance domestic toy manufacturing capacity and global market competitiveness.